Savers 'must be recognised'

Thursday, May 20th 2010

Britain's banks and the new government must recognise the importance of savers and treat them fairly, a campaign group has argued.

Save Our Savers' founder member Jason Riddle said: "It's crucial that the government acts now to help all those savers who have been left powerless as inflation eats away at the real value of their savings."

According to a report from the Office for National Statistics, the consumer prices index rose by 3.7 per cent in the year to April, up from 3.4 per cent the previous month.

And if interest rates give returns that are lower than inflation, people are less likely to set money aside, stated Mr Riddle.

This is because doing so would give individuals reduced buying power and fewer financial incentives.

He emphasised the importance of savers to the country's economy, meaning they should be rewarded for this role.

Mr Riddle added many savers find it difficult to keep track of interest rates - a situation that the banks and government could improve.